Why Are Allakos Inc. (ALLK) Shares Dropping Now?

Why Are Allakos Inc. (ALLK) Shares Dropping Now?

Allakos Inc. is currently trading at a big discount. On Wednesday, the company disclosed that the patient-reported symptomatic co-primary endpoints in the ENIGMA 2 and KRYPTOS studies did not achieve predictive value.

Allakos CEO Robert Alexander stated that the firm is unhappy that the studies didn’t meet their symptomatic objectives.

Allakos chief medical officer Craig Paterson stated that although the EGID results are surprising and disappointing, the company will continue to study the data to understand the results and identify the road ahead for Lirentelimab in EGIDs.

Following the findings of the investigations, several analyst companies weighed in on the stock:

Allakos’ Underweight rating was maintained by Barclays analyst Carter Gould, who decreased the price target from $36 to $8.

Tim Lugo, a William Blair analyst, lowered Allakos from Outperform to Market Perform.

Allakos was downgraded from Outperform to Market Perform by SVB Leerink analyst Thomas Smith, who also decreased the price target from $150 to $17.

Allakos was reduced from an Outperform to a Market Perform rating by Cowen & Co. analyst Joseph Moore.

Allakos was reduced from a Buy to a Hold recommendation by Jefferies analyst Maury Raycroft.

Allakos is a clinical-stage startup that is developing therapeutic antibodies that target immunomodulatory receptors on the surface of immune effector cells that are involved in allergy, inflammatory, and proliferative illnesses.

ALLK Price Action: The price of Allakos has risen to $157.98. During Wednesday’s trading session, it hit fresh 52-week lows.

At the time of writing, the stock was down 88.50 percent to $9.67.

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Oladotun Olayemi

Dotun is a financial enthusiast who specializes in first-in-class financial content, including crypto, blockchain, market, and business, to educate and inform readers.